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Restructuring, Impairments And Other Nonrecurring Charges
9 Months Ended
Oct. 02, 2011
Restructuring, Impairments And Other Nonrecurring Charges [Abstract] 
Restructuring, Impairments And Other Nonrecurring Charges

(8) Restructuring, Impairments and Other Nonrecurring Charges

As announced during the fourth quarter of 2008, the Company committed to a restructuring program, which included the closure of its Kenton, Ohio facility, significant reductions in the workforce in its Marion, Ohio facility and the integration of its Electronics Group subsidiaries. The purpose of the restructuring program is to reduce fixed costs, accelerate integration efficiencies, exit certain unprofitable product lines and significantly improve operating earnings on a sustained basis. As a result of the restructuring program, the Company recorded a charge of $356,000 and $233,000 for the three and nine months ended October 2, 2011, which is included in restructuring expense, net on the consolidated statement of operations. Of the $356,000 charge recorded in the third quarter of 2011, $342,000 was for equipment relocation costs and $206,000 represented other costs, primarily related to mothball costs associated with closed or partially closed facilities. Partially offsetting this was a $192,000 gain on the sale of assets that had previously been impaired. The charge of $233,000 for the nine months ended October 2, 2011 consisted of equipment relocation costs and mothball costs partially offset by a $685,000 gain on the sale of assets that had previously been impaired.

A summary of the pre-tax restructuring charges is as follows (in thousands):

 

             Costs Incurred         
      Total
Program		      Nine Months
Ended
October 2, 2011		     Total
Recognized
to date		      Remaining
Costs to be
Recognized		  

Severance and benefit-related costs

    $ 4,046       $ —        $ 4,046       $ —     

Asset impairments

      12,836         (685 )      12,836         —     

Deferred contract costs write-offs

      17,798         —          17,798         —     

Inventory related charges

      7,895         —          7,895         —     

Equipment relocation costs

      2,741         527        2,618         123   

Asset retirement obligations

      1,501         —          1,501         —     

Contract termination costs

      3,209         —          3,209         —     

Other

      5,459         391        5,408         51   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 55,485       $ 233      $ 55,311       $ 174   
  

 

 

     

 

 

    

 

 

     

 

 

  

A summary of restructuring activity and related reserves at October 2, 2011 is as follows (in thousands):

 

      Accrued
Balance at
December 31,
2010		      2011
Charge		     Gross
Cash
Payments		     Accrued
Balance at
October 2,
2011		  

Severance and benefit-related costs

    $ 267       $ —        $ (84 )    $ 183   

Asset impairments

      —           (685 )      685        —     

Equipment relocation costs

      —           527        (527 )      —     

Asset retirement obligations

      1,173         —          (447 )      726   

Contract termination costs

      459         —          (357 )      102   

Other

      —           391        (391 )      —     
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 1,899       $ 233      $ (1,121 )    $ 1,011   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

A summary of total expenses recognized to date by reportable segment is as follows (in thousands):

 

     Industrial
Group		      Electronics
Group		      Total  

Severance and benefit-related costs

    $ 2,562       $ 1,484       $ 4,046   

Asset impairments

      12,836         —           12,836   

Deferred contract costs write-offs

      —           17,798         17,798   

Inventory related charges

      —           7,895         7,895   

Equipment relocation costs

      2,596         22         2,618   

Asset retirement obligations

      1,501         —           1,501   

Contract termination costs

      1,868         1,341         3,209   

Other

      1,777         3,631         5,408   
  

 

 

     

 

 

     

 

 

  
   $ 23,140       $ 32,171       $ 55,311   
  

 

 

     

 

 

     

 

 

  

The total pre-tax costs of $55,485,000 expected to be incurred includes $23,314,000 within the Industrial Group and $32,171,000 within the Electronics Group. The Company expects to incur additional pre-tax costs of $174,000, all within the Industrial Group.